The Captains Chest - Naked Trading & Other Stuff

[Sequoia]

Hi Everybody Great stuff here, thanks for your time and great advices!

CJ : I was wondering if Rangebars could help us see more clearly the Fox´s tracks , Have you ever used them?

Thanks !! (I have the EA that creates them if anybody wants it...)

[Captain Jack]

Steve, Namming Bob and Bunker's systems is: Trading with the trend.
Cj's system is completely different. Here you look for reversals and go against the trend of the TF that you are on. Mixing the two systems together and trading them on the same account would be a mistake (IMHO).
CJ has honestly said that nobody can trade like him and he is right.
He says his charts talk with him. My charts are dumb as a donkey and do not tell me a word
How can I possibly trade like him? But.... I am trying and I see light at the end of the tunnel.... hopefully it is not a train coming
Bernard

At risk of speaking for CJ, I don't think his methodology is counter-trend trading. CJ trades swings. Sometimes those swings are with the larger trend, sometimes against. The aim is to find stop hunts, pins and RRTs, and trade the resulting reversal. You can do that as an entry to the current trend, or as a counter-trend trade, or at the start of major trend reversal.

The insights offered here can be combined with many other trading methodologies - in essence CJ is showing us how to trade with the big boys and time our entries well.

You can mix systems if you understand how they compliment each other. You can put the 240MA on the 4H chart with volume bars and trade CJ trades that go back into the trend and not try to CT against the 240 line. In that way they can compliment each other. CT trading is a much more advanced form of trading and you need the skills to do it. For CJ he can do it in his sleep. For the new trader it is going to take some time to learn such a thing.

I am learning to read pin bars from CJ as a place to take my profits for each dip in the DT. I wait for the retrace and then take my next trade. This helps maximize the profits of my trades.

I'm glad to see that you are adding to your profits with some of this info Bob. When reading the posts in your thread, I couldn't help but notice how often the pins penetrated a level or pivot, giving notice of a price reversal at that point. The market makers do this at the levels or the MA's to give indication of continuation, only to pull it back and go the other way. They are the ones who create the levels and MA's and know full well where they are and were the pending orders and stops are located. Wishing you many more green pips.

CJ

[Captain Jack]

Early days yet, but already, I have learned more from this thread than I have learned in 8+ years every place else. So with that, CJ, a heartfelt thanks from a former trapper! I read and re-read and re-read once again as much as I could absorb over the past week and a half or so. Then I did something dumb... I put my balls out there yesterday and took 6 trades on my live 10k account. Why? Because one of the biggest obstacles with something like this is having conviction in what you see. It is believing what your eyes are telling you. And it's the thought that, "hey, it's only money..." If you can overcome that, and if you can truly BELIEVE and APPLY what CJ has put out here (he hasn't been losing money, right?), then you can take that leap, which I did...

I woke up this morning to discover that almost 1k had been added to my account risking basically 2% per trade or thereabouts.

I can't see myself ever going back to.... well, whatever. This is for me. I'm officially a convert. And CJ, for that, a huge thanks.

One thing I will say though... In addition to the RRT, I also look for a 4H or higher PIN BAR which two of my trades were the result of. Think of a higher TF pinbar much like a RRT... basically, it's an RRT in one candle. (CJ, feel free to interject here if I'm offering false or inappropriate info re the pinbar.)

So that's it for now. A link to my myfxbook where these trades were taken labeled NT_Manual for your perusal.



Thanks again, CJ.

Regards,

John

Glad to see you and so many others doing well John!

Since you are trading real money as you learn these methods, be careful to protect your capital.

I look to the higher time frames as well and will trade in line with those most of the time when I have major money on the line. Being wrong on a CT trade is more painful than being wrong when trading with the higher time frame trends, in general.

CJ

[Captain Jack]

03-04-2013 14-47-11 Today's Trades @ Profitable Levels 1.png

03-04-2013 14-47-11 Today's Trades @ Profitable Levels 1.png

03-04-2013 14-47-11 Today's Trades @ Profitable Levels 1.png

Hi guys,

today was a nice M pattern on AJ.. false Asia range breakout -> then M pattern with pin (btw look at volume and spread widening after pin)

El Capitaine CJ,


Thank you Very Very Very much, my Live Trade Results today , I have Never Made this Kind of Money in One Day of Trading, NAKED TRADING ROCKS :!: it's like an ATM Machine in my Living Room, at some point I held my Nerve because I was loosing big time but I had based my entries on the Pins and W and M formations so I knew I was in to a Big Thing and my Analysis Paid off.
Kruspe I like your Chart.

Happy Trading Y'all,

xrismak

Keep banking those green pips, Xrismak!

CJ

[Captain Jack]

Haven't heard from the Captain this week, so I assume he's out enjoying the spoils of his successful pillaging of the Fox's den. So I want to ask my fellow shipmates about M (and W) patterns. Are there ways they need (or should) look?

For example; should the top of the M be;
a) almost even
b) sloping down
c) sloping up
d) doesn't matter

Here is an M who's top is sloping up. I don't like seeing high highs when looking for a reverse, so I'm thinking I should pass. Thoughts on this and in general?

The same question I assume applies for W's in reverse. Any one's input is appreciated.

valid_M.png

In general, you don't want higher highs or lower lows....this indicates new levels. You want the high or low to be tested and hold. You are also only looking for these at the HOD/LOD or HOW/LOW....don't try to paint an "M" or "W" when none are there....it's only going to cost you $$.

CJ

[Captain Jack]

Btw just a one observation.. I think it is better to set a fix scale to the chart... when you scroll chart and it continually changes the scale you probably won´t see the right patterns (and it could be confusing). I hope you know what I mean

Why do you think the scale changes when you scroll the chart in the Empty4 platform?? It's designed that way to add deception to your view.

CJ

[Captain Jack]

... don't trade M or W patterns against the move from the peak.

f451, can you explain what you mean in the last sentence please. I'm still trying to get my head around this - unsuccessfully so far!

Thanks
Chris

Take a 4HR or 1HR chart and find the most recent higher high (if the chart is in a down trend), or most recent lower low (if the chart is in an uptrend). From that point the trend reversed. That swing point is the peak high or low. CJ calls this level 3, because this is where the level count resets (back to 1) as the trend changes.

Once you've spotted this peak level, you can look for three pushes (over three days), with each major push being a level.

When you're first learning to trade this way, it's safest to take M patterns short from a peak high, and W patterns long from peak low.

I'll post a marked up chart later on.

Your posts are spot on! You can fill in for me when I'm absent!!

CJ

[Captain Jack]

Chart_GBP_CHF_15 Mins_F451.png

Ha, I had just marked up your chart to show the option to go long! - nice analysis BTW Kruspe.

Nailed it again! You saved me the time of marking this one up! Picture perfect move out of Asian.....

CJ

[Captain Jack]

Take a 4HR or 1HR chart and find the most recent higher high (if the chart is in a down trend), or most recent lower low (if the chart is in an uptrend). From that point the trend reversed. That swing point is the peak high or low. CJ calls this level 3, because this is where the level count resets (back to 1) as the trend changes.

Once you've spotted this peak level, you can look for three pushes (over three days), with each major push being a level.

When you're first learning to trade this way, it's safest to take M patterns short from a peak high, and W patterns long from peak low.

I'll post a marked up chart later on.

Firstly, thanks to everyone for taking the time here. My eyes have been opened and I'm really excited to learn more...

You mention "three pushes over three days". This is where I keep having problems when identifying pushes. See the chart below. Its a copy of a chart the captain posted On this page. On this 4H chart He shows pushes and stop hunts that last for days. The stop hunt itself lasted for 3 days. Why isn't this a level? It has a higher high and a higher low and it doesn't take out a previous high or low.

Again looking at the chart the price hits level 3. Time to reverse, right? It goes down as planned but then comes back up to the same level 3 price 8 days later. Granted the level 3 price held, but this really feels like a 95 pip consolidation. Is there any planning for this? Are the RRTs after the drop and immediately before the rise back up a warning?

more_level_questions.png

I look for levels on 4H chart and I swear I see pairs with 5,6 and 7 continuous levels in one direction, look at EURGBP. Each of those marks are a day or more apart. When I see this I question my ability to count levels and make good entries.

eg.png

When I speak of 3 levels of rise over 3-5 days, it's on the 15M time frame, not the 4H.

The levels pertain to the daily cycle. 3 levels over 3 days.

There can be 3 pushes in price on any of the days. The 3 pushes happen over the 1 day cycle of Asian, London and NY session.

That is the difference in a level and a push.

Stick to the 15M time frame until you learn these basics.

CJ

[Captain Jack]

Here's Krupse's GBPCHF chart again with some simple price action/swing points marked (in yellow) to show how the trend changes - the entry points are basically early entries after the price action signals a potential trend change - it just that we use the foxes tracks (Ws, Ms, widening spread and range) to confirm that our early entry on a potential trend change is going to work out...

Chart_GBP_CHF_15 Mins_F451.png

What you don't see on the charts are the 'technical trend". Throw some MA's, fibo or pivot levels on the charts and you will see how the fox uses the technical trend to trap traders before running price on the true trend.

CJ